A Case Study about Linking Education Policy to Labor Market Outcomes
Overview: The objective of this study is to review what is known about the role of education in improving labor market outcomes, with a particular focus on policy considerations for developing countries. The report presents findings from current literature on the topic, which offer new ways of looking at the returns to education, together with evidence from four original data analysis and background studies of education and labor issues in Ghana and Pakistan.
Educational Policy Content: The Millennium Development Goals assume that the completion of primary education, along with the achievement of the other goals, will help realize the goal of cutting in half the number of people living in poverty worldwide by 2015. The data analyzed in this report indicate that just increasing the quantity of education at the lower educational levels will not raise earnings substantially, and thus not prove to be effective in helping people climb out of poverty. Given the increasing demand for skills and the development of skills-biased technology,it could be that the returns to primary education are low.
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